Finding an tax accountant in the UK may be a necessary course of action for businesses registered in the United Kingdom. Keeping proper, accurate and up to date financial records can mean the difference between a peaceful existence and locking horns with the government over underpaid or unpaid taxes. It is much better and much less stressful to prevent problems from happening through careful planning than it is to deal with problems after-the-fact. Finding a professional and knowledgeable UK accountancy firm can make the life of a business owner much more peaceful.
Having a trusted accountancy firm on hand that knows the tax code inside out and can keep your financial records according to it, is a necessity, especially when a business does not directly employ a member of staff that can handle such functions.
Rather than a business owner or an under-qualified employee attempting to handle the financial accounting on their own, outsourcing to a professional accountancy firm becomes a very functional and easy alternative. However, all that being said it is important to choose the right type of accountancy firm. Choosing the wrong company or accountant can lead to serious problems and can waste both a company's time and money.
A business' future is in the hands of the tax firm they choose to represent them. If the one that is hired is unaware of the United Kingdom's tax code or not as up to speed as they should be with the various intricacies of the British tax code, that can spell disaster for the company.
A business should look for appropriately trained and experienced tax accounting firms. Those with a properly trained and qualified staff are the only ones that deserve consideration.
Using a trustworthy, well qualified and experienced accountancy firm is absolutely vital (if you're still unsure check out this handy guide on why you should hire an accountant). Choosing one without the proper qualifications, experience and know how, will only set a business up for failure.
Tuesday 20 October 2009
Wednesday 14 October 2009
Outsource your accounting
Doing your own accounting year on year can get very tiresome, boring and extremely time consuming, particularly for small businesses. For small businesses the accounting work falls on the shoulders of the business owner since it is not cost effective to hire a professional, chartered accountant full time. So with a basic understanding of business accounts the business owner has to manage the balancing of accounts, tax returns and tax deductable items.
Of course while he/she is doing this he/she has to continue to manage the business on a day to day basis. The pressures on a small business owner to just keep his/her company profitable, whilst all the time trying to grow the company is massive. Throw in the accounts side of things and it is not difficult to see why a lot of small business owners choose to outsource their accounts to a professional accountant.
For bigger companies trying to survive in the recent economic downturn the prospect of moving all of their accounts work to an outside party has it's benefits. In a bid to streamline the company and focus the majority of their attention on grabbing whatever sales, income and market share they can grab a non-income department like accounts can be outsourced to an offshore company, getting rid of the need to employ numerous accountancy staff.
Outsourcing of accounting is basically the process of a company handing over their financial records to another company who specialise in accountancy and who can provide all the necessary services required, removing the need for the company to employ dedicated accountancy staff. The accountancy firms will employ expert accountants who not only manage the accounts for one company but for an entire portfolio of companies, making it a very cost effective way of getting things done.
Obviously the number one fear when it comes to outsourcing your accounts has got to be secrecy, just how safe is your financial information? The accountancy firm that you choose to outsource your accounts to are sworn to secrecy and cannot share your information with any other 3rd party.
Friday 9 October 2009
An accountant for business
One of the least enjoyable things for most business owners when it comes to running a company is keeping up with the accounts.This is why it can often be easier, quicker and much more efficient to enlist the services of a proffesional accountant. However, for a lot of companies, it isn't quite as straight-forward as that. A business owner will have to consider what tasks they will continue to do themselves, and what tasks they would expect their accountant to deliver.
Doing Your Own Accounts
If a business owner intends to go it alone with their accounting, it is worthwhile them knowing that they will likely require the services of an accountant at some point in the future. For example, some limited companies are required to have their accounts audited. Although some people think that they will spend more money by employing the services of an accountant, they may actually find that they end up spending more on tax; getting less attractive financing options; missing tax deductable items that an account would pick up on and that the business owner wastes too much time on filling in returns that should be spent growing the business.
Accountant's Sector Experience
It's great to work with an accounting firm that has experience with other clients in the sector or industry in which you operate. The firm will then not only be able to take care of your paperwork but also give you advice on the future direction of your business. Ask your potential accountant for examples of clients similar to you that they've worked with. If they can't, then ask them why they think they're right for the job.
A Large Accounting Firm or an Accountant?
If you work with a larger accounting firm then it is likely that you will have access to experience in more areas. Larger firms have experience in dealing with business consultancy, taxation, mergers & acquisitions, auditing and other complimentary services. However, their prices will definitely be higher. They have more expenses and, they are unlikely to be willing to dedicate as much time to your company if they have some larger customers to look after also.
An individual accountant, on the other hand, will form a closer bond with you and your business. They might not have direct access to all of the experience on hand, but you are more likely to be able to get their services for a cheaper price.
Recommendation on the accountant
It's always best to get references from other business owners before choosing an accounting company or accountant. Find out about the experiences others have had, whether they completed work on time, whether they offered tips for their business, and whether they found their service to be satisfactory. It is always best to get some first hand recommendations before entering in to a contract with someone.
Accounting Prices
Agree prices before you have any work carried out. Some accountants charge a fixed annual fee whilst others charge per hours worked. Evaluate your business and work out which is the most cost effective route for you.
Wednesday 7 October 2009
Tips for selecting the right accountant
Of all the consultants you are likely to encounter when running a small business, a good accountant is perhaps the most valuable one to have, along with maybe a solicitor. By having someone on hand to keep your accounts up to date and in order you will be able to concentrate fully on running your business day to day.
- If possible try to select an accountant prior to setting your business up.
- Make sure your accountant is fully qualified, it is very easy to overlook this step and end up hiring someone who talks the talk but ultimately fails to back it up.
- For small businesses it is essential that your accountant works with other small business clients. If you work in a particular niche industry, i.e. online retail make sure that they have the necessary experience in dealing with the issues that crop up in that particular industry.
- How much does the accountant charge? Is there a fixed annual or monthly fee to complete all business tax requirements, or do hourly fees apply? Compare the fees of several firms.
- Don't just go for the first accountant you meet, try to meet at least three and meet face to face to discuss your business. As time goes on it will be important to have developed a good relationship with your accountant so bear that in mind when selecting.
- What other services does the accountant provide - can they complete your self assessment returns?, do they provide any business advice or further information to help you grow your company?
- As a small business you may find you are much more suited to a small accountancy firm. They will be more geared up to look after you and less likely to have big clients who monopolise their time and interest.
- Ask to speak to existing clients before signing up. A decent accountancy firm should be happy to arrange this, but bear in mind they are only going to put you in touch with happy clients.
The role of an accountant in your business
Many businesses do not fully appreciate the role a fully qualified and certified accountant can play in the effective running of a company. A large number of accountants are not just hired simply for the filing of tax returns, preparing of financial statements and generating of an assortment of business forecasts/reports. These professional accountants are actually invaluable consultants that can help run a business properly and financially efficient. A good accountant is capable of interpreting financial as well as operational data of businesses, and provides sound recommendation and advice for further business growth and expansion.
Here are a few roles a qualified account professional can play in the running of your business
General Bookkeeping
All financial specialists should be trained to properly maintain the financial records of all types of business organizations, obviously you will want to ensure they are porperly qualified prior to hiring them. They would also be responsible in generating standard business financial reports and documents.
Compliance of Government Rules and Regulations
For those who are just starting with their own business, the task of complying with the myriad of government requirements for new businesses can be a mammoth task. Without the assistance and able support of someone well versed in the intricacies of tax law, a business owner may end up wasting too much valuable time and money trying to muddle through it themselves.
Business Tax Planning
On top of the general assistance provided in compliance with the required tax reporting, the business consultant will also provide the business with a comprehensive tax planning guidance in order to maximize business tax exemptions.
General Financial Consultancy Service
A good accountant, as well as doing the menial tax returns work, can also operate as a business consultant for your company. As such, he/she can offer expert advice on effective management of company cash flow, PAYE and relevant financial options especially for start up businesses.
The role of accountants is now to do tax planning for their clients. The best accountant is one that drags you into his or her office once a year to look at your finances and plan a strategy to limit what you will pay the tax man. This should occur at some point during the beginning of the tax year, not a week before your tax returns are due!
A few weeks ago I was asked:
I operate a small business, less than 10 employees, but the accounting side of things is now starting to take up too much of my time So I need to hire an accountant.
Can you recommend me an accountant in Middlesbrough or the surrounding area that specialises in small business and preferably engineering companies?
What I would say to that is, and this is true no matter where you are in the country, you need to call a few accountants in your area and discuss your needs with them. See what experience they have, what they specialise in and whether they have worked with companies in your industry before.
Heres an article on questions to ask a potential accountant if you are stuck.
Subscribe to:
Posts (Atom)